Compilations and Reviews

Closely held businesses have assurance needs that often don’t require an audit. Compilations and reviews are alternatives to audit engagements, designed specifically for smaller businesses. The purpose of these alternatives is to enhance the credibility and reliability of a company’s financial statements when regulators, lenders, suppliers or others request the participation of an external CPA.

When assurance as a result of the audit process is not required, Hein can meet your needs by providing reviews and compilations that are less in scope than an audit.

The Process

Hein’s Compilation and Review Services are performed in accordance with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

Compilations are limited to reading a company’s financial statements, as provided by management, and considering whether they are in an appropriate form and free from obvious errors. Review engagements go a step further, adding inquiries about company personnel and analytical procedures to financial data, as well as limited assurance on the financial data.

Both types of engagements are significantly less in scope than an audit performed in accordance with generally accepted audit standards. The limited scope is explained in our report, which accompanies the compiled or reviewed financial statements.

Hein professionals can help you choose which alternative: compilation, review, or audit is the most appropriate and cost-effective choice for your company and circumstances.